Indian equity benchmarks
continued their winning momentum for the fifth consecutive day and settled with
gains of over half percent on Thursday led by gains in telecom, capital goods
and industrials stocks. After making cautious start, key gauges soon gained
traction to trade in green, as traders took support with former Niti Aayog Vice
Chairman Arvind Panagariya's statement that Indian economy, which has grown
fairly rapidly in the last 17 years, will grow at 7-8 per cent in the next
couple of decades. Some support also came as rating agency ICRA's report stated
that the growth in assets under management (AUM) of non-banking financial
companies (NBFCs) and housing finance companies (HFCs) is likely to be at 9-11
per cent in FY23 compared to a rise of 9.5 per cent in the last fiscal. Adding
more optimism, Foreign Institutional Investors (FII) remained net buyers for
the third day straight on Dalal Street on Wednesday. FIIs pumped in Rs 1,780
crore into domestic stocks. However, in the late afternoon deals, key gauges
trimmed most of their gains as traders got anxious with a private report
stating that India's economic activity showed early signs of cooling off in
June as acute price pressures, rising interest rates, and a falling rupee
dampened sentiment after a strong showing the previous month. But, markets
regained traction to end higher taking support from Chief Economic Advisor
(CEA) V Anantha Nageswaran's statement the depreciation of the rupee against
the US dollar has been lower than other major global currencies such as the
Euro, the British pound and the Japanese yen. He attributed depreciation in
rupee and other currencies against the US dollar to the aggressive monetary
tightening by the US Federal Reserve. Additional support also came after the
labor ministry indicated that retirement fund body EPFO added 16.82 lakh, new
subscribers, in May 2022, nearly 83 percent more than 9.2 lakh enrolled in the
year-ago month. Finally, the BSE Sensex rose 284.42 points or 0.51% to
55,681.95 and the CNX Nifty was up by 84.40 points or 0.51% to 16,605.25.
The US markets ended higher on
Thursday, with Nasdaq ending higher over one percent after shares of Tesla
(TSLA) rose 9.8 percent on reporting second quarter earnings that beat
expectations. However, cautiousness prevailed in the markets during the trading
session as traders expressed some uncertainty about the outlook for the markets
following the recent upward move. On the economic data front, the Labor
Department showing initial jobless claims unexpectedly rose to an eight-month
high in the week ended July 16th. The report showed initial jobless claims
crept up to 251,000, an increase of 7,000 from the previous week's unrevised
level of 244,000. The uptick surprised participants, who had expected jobless
claims to edge down to 240,000. Jobless claims inched higher for the third
straight week, reaching their highest level since hitting 265,000 in the week
ended November 13, 2021. A separate report released by the Federal Reserve Bank
of Philadelphia showed regional manufacturing activity unexpectedly contracted
at a faster rate in the month of July. The Philly Fed said its current general
activity index slumped to a negative 12.3 in July from a negative 3.3 in June,
with a negative reading indicating a contraction in regional manufacturing
activity. Street had expected the index to rebound to a positive 0.4. The
Conference Board also released a report showing its index of leading economic
indicators decreased for the fourth straight month in June. The Conference
Board said its leading economic index slumped by 0.8 percent in June after
falling by a revised 0.6 percent in May. Street had expected the leading
economic index to decline by 0.5 percent compared to the 0.4 percent drop
originally reported for the previous month.
Crude oil futures ended deeply in
red on Thursday on weakened demand in the United States, the world's top oil
consumer, and a pick-up in supply from Libya. Growing stockpiles of crude,
concerns about the Chinese economy due to the country's zero-COVID approach and
lingering worries about interest-rate hikes by major central banks also
tempered fears of a tight market. Meanwhile, the European Central Bank (ECB)
raised rates more than expected on Thursday looking to rein in inflation, with
ECB President Christine Lagarde warning that inflation risks had intensified. Benchmark
crude oil futures for September delivery fell $3.53 or 3.5 percent to settle at
$96.35 a barrel on the New York Mercantile Exchange. Brent crude for September
delivery lost $3.06 or 2.9 percent to settle at $103.86 a barrel on London's
Intercontinental Exchange.
Erasing previous session losses,
Indian rupee ended substantially stronger on fresh selling of American currency
by banks and exporters. Traders got support with former Niti Aayog Vice
Chairman Arvind Panagariya's statement that Indian economy, which has grown
fairly rapidly in the last 17 years, will grow at 7-8 per cent in the next
couple of decades. Additional support came with Chief Economic Advisor (CEA) V
Anantha Nageswaran's statement the depreciation of the rupee against the US
dollar has been lower than other major global currencies such as the Euro, the
British pound and the Japanese yen. Adding more optimism, Foreign Institutional
Investors (FII) remained net buyers for the third day straight on Dalal Street
on Wednesday. FIIs pumped in Rs 1,780 crore into domestic stocks. On the global
front, pound slid against the dollar on Thursday amid worsening risk appetite
ahead of the European Central Bank rate decision and amid political turmoil in
Italy. Finally, the rupee ended at 79.85 (provisional), stronger by 20 paisa
from its previous close of 80.05 on Wednesday.
The FIIs as per Thursday's data
were net buyers in both equity and debt segment. In equity segment, the gross
buying was of Rs 12813.31crore against gross selling of Rs 5801.49 crore, while
in the debt segment, the gross purchase was of Rs 1130.26 crore against gross
selling of Rs 92.23 crore. Besides, in the hybrid segment, the gross buying was
of Rs 0.32 crore against gross selling of Rs 6.66 crore.
The US markets ended higher on
Thursday after investors flocked to growth stocks. Asian markets are trading
mostly in green with marginal gains on Friday after Japan's inflation rose 2.2
per cent in June. Indian markets rose around half a percent each on Thursday to
extend gains for a fifth straight session as the corporate earnings season
gathered steam. Today, markets are likely to open in green amid strong foreign
inflows, sustained rally in the US markets, and easing crude oil prices.
Foreign institutional investors (FIIs) have net purchased shares worth Rs
1,799.32 crore, continuing buying for the fourth consecutive session on July
21, as per provisional data available on the NSE. Traders may take note of
Commerce Secretary BVR Subrahmanyam's statement that negotiations for the
India-UK free trade agreement will be concluded by August 31 and ready for
signing by Diwali in October. However, there may be some cautiousness as the
Federation of Indian Chambers of Commerce and Industry's (FICCI) quarterly
survey showed that the Indian economy is expected to expand 7% in fiscal
2022/23, slower than a previous estimate of 7.4% and the central bank's 7.2%
projection. The survey said the war in Ukraine is likely to keep inflation high
and dent consumer demand. Also, the Asian Development Bank (ADB) has slashed
its growth forecast for India to 7.2 per cent for FY23 from 7.5 per cent estimated
earlier citing higher than anticipated inflation since April and subsequent
monetary tightening by the central bank. Meanwhile, capital markets regulator
Sebi has proposed a regulatory framework for the online bond platforms that are
selling listed debt securities. Under the proposal, bond platforms should
register as stock brokers (debt segment) with the Securities and Exchange Board
of India (Sebi) or be run by Sebi-registered brokers. There will be some buzz
in pharma industry stocks as the government launched three schemes to
strengthen Micro, Small and Medium Enterprises (MSMEs) in the pharmaceutical
sector. Union minister Mansukh Mandaviya noted that the schemes envisage
technology upgradation, setting up of common research centres and effluent treatment
plants in clusters for the pharma MSMEs. Banking stocks will be in focus as
S&P Global Ratings said non-performing loans of banks are expected to
decline to 5-5.5 per cent of the total advances by March 2024. There will be
some reaction in preventive healthcare industry stocks with a private report
stating that India's preventive healthcare sector - fitness, wellness, foods
and supplements, early diagnostics and health tracking - is projected to reach
$197 bn by 2025, growing at a CAGR of 22 per cent. Investors awaited corporate
earnings from India Inc for domestic cues, with Reliance Industries and
UltraTech among the large-cap companies slated to report their financial
results later in the day. Reliance Industries is likely to report strong earnings
for the quarter ended June 30, 2022.
Support and
Resistance: NSE (Nifty) and BSE (Sensex)
Index
|
Previous close
|
Support
|
Resistance
|
NSE
Nifty
|
16,605.25
|
16,517.11
|
16,660.16
|
BSE
Sensex
|
55,681.95
|
55,388.97
|
55,856.71
|
Nifty Top volumes
Stock
|
Volume
|
Previous close (Rs)
|
Support (Rs)
|
Resistance (Rs)
|
(in Lacs)
|
IndusInd Bank
|
235.81
|
948.10
|
906.46
|
975.86
|
Wipro
|
226.91
|
414.00
|
405.24
|
420.14
|
Oil and Natural Gas Corporation
|
208.53
|
133.10
|
132.10
|
133.80
|
ITC
|
160.42
|
299.55
|
297.64
|
301.84
|
State Bank of India
|
138.14
|
512.05
|
508.06
|
514.71
|
IndusInd Bank has reported a rise of 60.53% in its consolidated net profit at Rs 1,631.14 crore for Q1FY23 as compared to Rs 1,016.11 crore for the same quarter in the previous year.
State Bank of India has received approval for raising capital of Rs 11000 crore by way of issuance of Basel III compliant debt instrument in USD/INR and/or any other convertible currency during FY23.
JSW Steel is undertaking various initiatives to reduce carbon footprint in line with India's net zero ambitions.
NTPC has inked a MoU with Moroccan Agency for Sustainable Energy for cooperation in renewable energy.